what is happening at the base of the pyramid in south africa? · violence/drug addiction 4 promote...

What is happening at the Base of the Pyramid in South Africa?Enrico Calandro, Miriama Deen-Swarray, Steve Esselaar, Alison Gillwald & Christoph Stork

Global Forum on Innovation and Technology Innovation, East London, South Africa, 28-30 May 2013

1Wednesday, 29 May 13

2

Methodology

Wednesday, 29 May 13

3

Mobile Apps Ecosystem


Mobile Ownership and use

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BoP RoP DifferenceMobile phone ownershipMobile phone ownershipMore than 1 Active Sim CardMore than 1 Active Sim Card

Is your Mobile Phone main sim card…

PrepaidIs your Mobile Phone main sim card… Postpaid

Where do you charge your mobile phone mostly?

Home

Where do you charge your mobile phone mostly?

ShopWhere do you charge your mobile phone mostly? Work/SchoolWhere do you charge your mobile phone mostly?

OtherIs your mobile phone capable of browsing the Internet?Is your mobile phone capable of browsing the Internet?

Do you share your mobile phone with others?

No


Daily


Once a weekDo you share your mobile phone with others? Several times a weekDo you share your mobile phone with others?

Several times a month


Occasionally

74.8% 88.7% 13.9%15.6% 14.2% -1.4%98.5% 83.7% -14.8%1.5% 16.3% 14.8%

82.6% 96.6% 14%15% 1.5% -13.5%0.2% 1.6% 1.4%2.2% 0.3% -1.9%

33.2% 57.7% 24.5%79.1% 88.1% 9%8.1% 6.4% -1.7%

2% 0.9% -1.1%1.7% 1.1% -0.6%0.5% 0.1% -0.4%8.6% 3.3% -5.3%


What mobiles are being used for

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BoP RoP DifferenceMaking and receiving callsMissed call/please call me etc. Sending and receiving text messages (SMS)Personal Organiser/Diary/Notebook/WatchPlaying GamesListen to music/radioTaking photo/video clipsBrowsing the internetFacebook/Twitter/Mxit/other social networkingDownload applications to mobile phoneTransfer airtimeSMS to Radio or TV programsReading and writing emailsInternational callsSending or receiving moneyRoaming when abroadSkype/VOIP

99.4% 99.3% -0.1%96.8% 91.9% -4.9%96.6% 96.6% 0.0%66.8% 75.7% 8.9%42.8% 44.6% 1.8%37.5% 44.2% 6.7%36.3% 61.7% 25.4%13.6% 32.2% 18.6%12.8% 29.3% 16.5%11.1% 26.3% 15.2%10.2% 25.7% 15.5%6.1% 10.4% 4.3%5.2% 21.4% 16.2%4.3% 18.1% 13.8%3.6% 9.9% 6.3%0.8% 6.3% 5.5%0.5% 3.9% 3.4%


Internet access and use

6

Are you signed up for any online social network (Facebook, Mxit, Twitter etc.)?Are you signed up for any online social network (Facebook, Mxit, Twitter etc.)?Share of those that are signed up for a social network, that are on MxitShare of those that are signed up for a social network, that are on MxitShare of those that are signed up for a social network, that are on FacebookShare of those that are signed up for a social network, that are on Facebook

Do you have an email address?Do you have an email address?

How often on average have you used the internet in the last 3 months?

Every day or almost every day


At least once a weekHow often on average have you used the internet in the last 3 months? At least once a month


Less than once a month

BoP RoP Difference

52% 78% 26.0%

47.7% 26.2% -21.5%

68.4% 88.9% 20.5%

29.3% 75.9% 46.6%

44.6% 68.9% 24.3%

28.3% 23% -5.3%

27.1% 5.8% -21.3%

0% 2.2% 2.2%


What limits your use of the Internet?

7

there is no interesting content for me

lack of local language content

the Internet is very slow

to expensive to use

few people to communicate with via the Internet

BoP RoP Difference

30.5% 19.4% -11.1%

4.3% 9.3% 5.0%

20.8% 25.3% 4.5%

47.9% 36.1% -11.8%

21.8% 19.3% -2.5%


Using Internet daily for the following activities

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Social networking (Facebook Youtube Mxit)Posting information or instant messaging

Getting information about goods or servicesSending or receiving email

Find or check a fact / Look up a definition of a wordEducation or learning activities (formal)

Look for free education content such as free coursesGet information for school/ university or research a topic

Reading newspapers magazines ebooksGetting information from government organizations

Downloading/watching movies/music/imagesPlaying or downloading games

Getting information related to health or health servicesCollaborate online on documents (eg Google docs)

Downloading softwareDistance learning for academic degree or job training 6%

7%10%

5%15%

14%5%

12%9%

6%10%

13%41%

10%36%

56%

1%1%2%3%3%3%4%4%5%6%

9%9%9%

12%23%

36%

BOP ROP


Reasons for not using the Internet

9

BoP RoP Difference

I don’t know what the Internet is

No interest / not useful

I don’t know how to use it

No computer / internet connection

Too expensive

No time, too busy

None of my friends use it

Is too slow, limited bandwidth

65.2% 42.7% -22.5%

34.1% 46.1% 12.0%

85.8% 69.6% -16.2%

91.2% 83.8% -7.4%

60.1% 59.1% -1.0%

20.1% 23.3% 3.2%

66% 50.7% -15.3%

10% 9.8% -0.2%


List of mob-apps for the BoP in SA

10

GroupNumber of apps

availableShort description

Health 17 Assisting community care workers/HIV counseling, support, education/Medical literature over the phone/plug-in devise for remote testing/logistics, dispersing drugs

Employment/Job 2 performing simple tasks over the phone/professional networking/ job hunting for low income groups

Education/Learning 4 Interactive learning materials for students and teachers/local content sharing platforms/video reporting

Environment 2 Data capturing for low skills workers

Agriculture 1 Added value corporate services for small scale farmers

Finance/transactions 3 Low cost transactional bank account/MobileMoney/Buying airtime credit

Social 2 Advertisement/Instant messaging/Chat rooms

Enhancing Communication for NGOs 1 Messaging platform for NGOs

Combination: Health/Social 2 Stories and live chats/Facts on HIV and AIDS; daily news & celebrity stories

Social Issues Application: Violence/Drug Addiction 4 Promote social justice issues/SMS to report on act of violence/mobile counseling

through instant messagingWednesday, 29 May 13

11

Operation System

Hardware

Payment systems

Distribution channel

M-app Type

iOS

iPhone

Credit Card or gift card

iTunes

OS based

Android

Android Phones

Credit Card or Google Wallet

Google Play

OS based

OS agnostic

Feature / smart phone

Bank transfersairtime or platform

currency Moola

Mxit App Store

Platform based

Generic Ecosystem Apple's Model Google's Model Mxit model

OS agnostic

Credit card, local currency

App Center

Platform based

Facebook

Revenue stream

Key Players

OS agnostic

Airtime

Social Media

Platform based

Bottom of BOP

Feature / smart phone

Basic, feature, smartphone

30% of App & hardware sales

x% of App & advertising

Share of SMS and data revenue

30% of App & advertising

Share of SMS and data revenue

Vendor Vendor Key Players Key Players Social media platform

Customers400 million

registered iTunes customers

+/- 350 million 45 million users, 10 million active 1 billion users Facebook / Mxit

Number of Applications

635,000 225 billion downloads

450,000 +/- 7009 million apps and

websites integrated with Facebook

Unrestricted

Developer 43,185 iOS developer

10,199 Android developer 415 +/- 100,000 Unrestricted

Which m-app Ecosystem?


Ecosystems through ICT Market Development Stages

12

Features Level 1 Level 2 Level 3

Key players Mobile operator as gatekeeper (Safaricom / MPESA e.g.)

Mobile operator and application platform (Mxit e.g.) develop a relationship or rival

Mobile operator agnostic / Vendor driven ecosystem (Google/Apple)

Payment systems

Closed m-Payment system (no public API)

Revenue sharing on data and or text messages (SMS), airtime as currency, possibly M-money integration (e.g. MPESA)

Full set of payment system in place including credit cards, Paypal and m-money

Revenue streams

Limited revenue streams: share of SMS or data revenues, membership fees, airtime

Expanded revenue streams: mobile money based transaction fees in addition to SMS and data revenue share, membership fees, airtime

Multiple revenue streams in place: advertising, once-off purchase of the app, in-app purchases, credit card and payPal integration in app store

Hardware Basic phones Feature phones Smartphone (e.g. Android, iPhone, BlackBerry)

Mobile applications

SMS and USSD dominate / server based applications OS or platform based m-apps OS or platform based m-apps

Network requirement 2G 2.5G or better 2.5G or better


13

The household and individual survey research is made possible with the support of the IDRC


what is happening at the base of the pyramid in south africa? · violence/drug addiction 4 promote...

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